GKP

A quick note.

Some nice price action here. Nice bounce off 64 support area with a hammer like candle and 2 day volume indicates a potential bottom (for now). Currently at first resistance 72.25. Next is 78.25 but I wouldn't be surprised to see 81 before the next retrace. Just my guess/bet as this is ma20 and in the area of some trend lines. Might only get to 78.25 though.

Currently (at 72.25) we have a very attractive bottom like formation - hammer, engulfing, thrusting or a combination of all. Looks great technically and a close above 72.25 should give more bullishness this week.

F4T

Deleted

Hi Richard,

stops should generally be placed under the next support or below the last swing low (or even under the previous days low). It really depends on the circumstances and can be different for each trader. Remo discussed this in his GKP post last week.

F4T

Hi Ian

Where do you think stops should be placed?

Richard

F4T,

you have Bearish stocks, and you have do not touch me with a barge pole bearish stocks.

This is currently the latter i'm afraid.
although i would happy to be wrong.

ATB,
Trendfriend.

Trendfriend,

this has been bearish since 450, nothing has changed.

The key with trading is to take advantage of peaks and troughs. Don't try and pick bottoms and with companies like GKP, never look medium term and certainly don't invest. History has born that out.

Todays action was pleasing and IMO certain after supports broke at 78.25. We should see volume to 15MM today and that was my mark for a short term bottom. The two most important indicators are always price and volume. I expected to see 64 (possibly tomorrow am but IMO unlikely now ) but 67 is good enough for me as it is at the CPR level for asset value.

The downtrend will likely continue, especially since we now have a lower low now, but I expect upside in the interim, same as the double breakout from the falling wedge a few weeks ago.

Traders and the city love this share, so it will continue to give excellent returns for the nimble. Always has done, long or short.

Let's see what happens.

F4T